A firm whose production process exhibits constant returns to scale would find that if it doubled all of its inputs, its output would ________.
A. double
B. less than double
C. more than double
D. remain constant
Answer: A
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During most of the time in recent decades, the domestic government sector was
A) a net borrower. B) a net lender. C) neither a borrower nor a lender. D) a major factor in keeping real interest rates low.
Which of the following is not true with respect to the rule used to determine the firm's profit-maximizing quantity demanded of capital? a. It is similar to the rule used to determine the firm's profit-maximizing quantity demanded of labor
b. It is similar to marginal labor cost divided by marginal revenue. c. It takes the interest rate into consideration. d. It equates marginal revenue product of capital to marginal factor cost. e. It equates the present value of capital to expected future rents.